We Don't Want to Run GM - We Want to OWN GM

Anyone remember when President Obama said the US government had no interest in running GM?

A friend of my laughed at me a few weeks ago when I said I thought President Obama was pursuing a socialist economic program. Now we have word that to "save" GM, the Federal Government has to "own" GM - or at least 50% of GM.

Oh, and the UAW - the single biggest part of GM (and Chrysler's and Ford's) problem gets 39%.

Bond-holders, who have the biggest financial stake in the company get 10% Here's how math works when you're with the government: Bond holders own $27+ Billion in debt and get 10%. The US Government has put in $14.5 Billion and gets 50% The UAW is exchanging $10 Billion in debt to get 39%.

Bond holders end up paying $2.7B per 1%. The federal government pays $0.29B per 1%, and the UAW pays 0.26B per 1%.

As far as I'm concerned, this is flat-out theft from the private bond-holders.

All of this could have just gone to bankruptcy, like other companies, where the UAW contracts could be renegotiated (that'll never happen now), the debt holders would have been better protected, and Barney Frank and Al Gore wouldn't be telling GM what kinds of cars to build.

Add to this the explicit intent to nationalize health-care, and nationalize major banks. When can we start saying that the United States is no longer a Capitalist country and is now a Socialist country?

The Administration is putting out the word that this government-owned result was just the logical result, not the original intent. Anyone believe that? I've got a bridge in Brooklyn if you're that gullible...

p.s. Chrysler: 55% to UAW, 35% to Feds. Chrysler, R.I.P., 2009.

p.p.s. I am of the opinion that buying a car from two of the three major American car companies is now flatly un-American.